Online Casino Boom: US revenue reaches a milestone, $590 million in December

Over the past few decades, there has been a notable expansion in the commercial casino business. Sportsbook operators have seen an increase in revenue due to the expansion of online sports betting and casino gaming in the United States. Licensed casinos set a record in revenue because of the continued legalization of gambling-related activities and the expansion of the experience economy globally. This article delves into the recent online casino boom in the United States.

Record-Breaking December Marks a Stellar Year for US Online Casino Revenue 2023

US iGaming is on track for yet another record-breaking year. Revenue through December was up to a total of $5.02 billion, 23.1% more than it was at the same time last year. The six active states earned $590.4 million in December revenue for the iGaming sector, which is still growing steadily. With a 17.8% year-over-year gain, this is the third-highest-grossing month for iGaming in the country.

According to online casino reviewers from CasinoAlpha, December marks the second month in a row of all-time high revenues for the US online gaming industry, after November 2023 registered a milestone revenue of $557.2 million. December was the second consecutive month of record-high revenue, and this is a significant number.

Essential Revenue Sources in the US Online Casino Market

Only six states—New Jersey, Connecticut, Delaware, Pennsylvania, Michigan, and West Virginia—offer online casino gaming. Of these six, New Jersey, Pennsylvania, and Michigan are the major three. The American Gaming Association claims these states have taken in $16.3 billion in 2023 income from online casinos.

New Jersey has produced a total of $6.91 billion since November 2013, Pennsylvania has produced $4.34 billion since July 2019, and Michigan has produced $4.1 billion since January 2021. During the same period, Pennsylvania earned $1.92 billion in overall tax income from wagers made at online casinos; New Jersey and Michigan each brought in $1.03 billion in 2022. Sports betting brought in $72.5 million, up 32.7%. This includes a total of $67.2 million online and $5.3 million from retail. In addition, handle had a surge, growing by 22.6% to $925.6 million in September.

Specific casinos and operators significantly increased revenue during this period. Hollywood Casino at Penn National came on top with $61.0 million in revenue from online gambling. At $41.3 million, Valley Forge Casino Resort came in second, followed by Rivers Casino Philadelphia at $31.3 million.

There was a significant contribution from popular online casino platforms in different states. FanDuel and Valley Forge Casino Resort are still the industry leaders, with $233.6 million in revenue. DraftKings and Hollywood Casino at the Meadows came in second with $121.1 million, followed by Hollywood Casino Morgantown and BetMGM with $21.0 million.

Pennsylvania's Strong Performance in Online Casino Revenue

In December, Pennsylvania recorded significant growth in monthly income. Slot machines, table games, sports betting, Igaming, video gaming terminals (VGTs), and fantasy sports contribute to Pennsylvania's combined income. Revenue from physical slots remained the highest, up 3.1% to $2.46 billion. However, revenue from land-based table games decreased by 1.9% to $971.7 million.

In addition to breaking many records for the year, December saw revenue reach an all-time monthly high. The total market revenue of $534.2 million exceeded the $515.3 million in gross revenue record established in March 2023. Additionally, this figure was 20.1% more when you compare to the $444.5 million in November 2023 and 12.5% more than $475.0 million in December 2022 revenue.

The state’s highest income was from retail slots, bringing in $207.8 million, 4.9% more than in 2022. Revenue from land-based table games increased by 1.6% to $82.9 million, while revenue from gambling increased by 22.7% annually to $ 165.1 million. This sum comprises $116.9 million from online slots, $45.8 million from table games, and $2.4 million from poker.

There has been year-over-year gaming revenue growth in most states, notably in Pennsylvania. For instance, Pennsylvania recorded $7.83 billion in known December handles, mostly due to accepting over $6 billion worth of bets, according to the Pennsylvania Gaming Control Board (PGCB)

Valley Forge Casino Resort and FanDuel were on top. With $19.2 million, Hollywood Casino at the Meadows and DraftKings came in second with $39.2, followed by Hollywood Casino Morgantown and BetMGM with $3.7 million.

New Leaders in the US Online Casino Environment

New US online casino market leaders have risen, especially in New Jersey. Since the online casino trail pack is now in sight, Golden Nugget Casino has become the new U.S. online casino market leader for the first time, surpassing Borgatta in New Jersey. It won over $50 million from online casino games in November, up 33% from the previous year.

November saw the margin close even more as BetMGM Online Casino could easily eclipse Golden Nugget as the market leader.

There were also strong performances from smaller operators during a similar period. The Borgata, Hard Rock, and Ocean made more money from live players in 2023 than before the epidemic. Smaller operators like Bally's and Ocean Casino in New Jersey also succeeded excellently.

Initially, there was worry that online gambling would steal funds that conventional casinos would have otherwise been able to collect from patrons. However, it has been shown that this is different. In the majority of states where online gambling is legal, the income from both online and offline gaming has increased. There are also future expectations of potential growth in 2024, with the online gambling market projected to reach a revenue of $107.3 billion.

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